Brands go Direct To Consumer
Brands continue to expand their Direct To Consumer footprint, with more than 40% of consumers reported to have made purchases directly from Brands in 2019. Combined with pressure from Amazon and Amazon Marketplace, traditional resellers are getting squeezed by both lower priced competitors and by Brands that are going direct to consumers and cutting the resellers out of the transaction.
In this environment it is critical for a reseller to make clear what value they add for their customer. Unless they can make a compelling story, the future looks difficult, with falling margins.